States’ personal income growth slows

On average in the U.S., state personal income growth dropped to 2.6 percent last year compared with 4.2 percent the previous year. Some of this may be a statistical fluke: The expiration of the payroll tax holiday and 2012’s moves by the wealthy to cash in before slightly higher tax rates kicked in. But mostly it points to a continuing weak recovery.

According to the U.S. Commerce Department’s Bureau of Economic Analysis, Washington’s personal income grew 3.2 percent last year and Oregon’s increased 3.5 percent. Idaho grew 3.7 percent. The only Northwest state below the national average was Alaska, at 1.7 percent.

Some caution is in order. These data represent “income received by all persons from all sources.” The part-time, minimum-wage worker at McDonald’s and Bill Gates. Growth from investments outpaces regular earnings. With inflation at 1 percent, many wages — which this report doesn’t specifically track — barely kept up or lost ground.

Here’s how the states stack up:

For a different picture and some context, let’s look at Washington’s per-capita personal income growth, measured year by year:

After a big dip for the recession, overall growth is still struggling to recover. You can read the entire BEA report here.

Washington’s inflation-adjusted gross domestic product grew 2.3 percent in the second quarter, the fifth strongest showing among the states. The new report comes today from the federal Bureau of Economic Analysis. The rate is down from a blistering 4.8 percent in the same period last year (the first quarter’s 11.5 percent was likely a statistical […]

The future for the existing world trade system and America’s place in it is facing one of its biggest challenges in history if President-elect Trump fulfills his campaign pledges. Washington state would be a big loser.